Form with which a corporation advises that it has resolved that some shareholders shall be required to give the corporation the opportunity to purchase shares before selling them to another.
Virgin Islands Corporate Right of First Refusal refers to a legal concept that grants a corporation the right to have the first opportunity to purchase or acquire certain assets or securities before they are offered or sold to a third party. This provision is commonly included in corporate resolutions to safeguard the interests of existing shareholders or corporate entities operating in the U.S. Virgin Islands. The Right of First Refusal is designed to ensure that existing stakeholders have a fair opportunity to maintain or increase their ownership in the corporation while preventing outsider shareholders from gaining control without the consent of existing shareholders. This provision allows the corporation to match the terms and conditions offered by a third party, thereby protecting the value and integrity of the company. There are two main types of the Virgin Islands Corporate Right of First Refusal: 1. Assets Right of First Refusal: Under this type, if a corporation decides to sell its assets, such as real estate, intellectual property, or tangible property, it must first offer these assets to existing shareholders before seeking potential buyers from outside the company. This provision gives the current shareholders a chance to acquire the assets, ensuring that they have the first opportunity to benefit from any potential value increase. 2. Securities Right of First Refusal: This type applies when a corporation issues new shares of stock or other securities. Before the corporation sells these securities to third parties, existing shareholders have the right to purchase them on the same terms and conditions. This ensures that existing shareholders can maintain their proportional ownership in the company and avoid dilution of their shares. Corporate resolutions pertaining to the Virgin Islands Corporate Right of First Refusal are passed by the board of directors or shareholders of the corporation. In the event of an offer from a third party, the corporation must notify its shareholders and provide them with a reasonable time frame to exercise their right of first refusal. Typically, this process includes extensive communication between the corporation and the shareholders, outlining the terms, price, and conditions of the proposed transaction. In conclusion, Virgin Islands Corporate Right of First Refusal — Corporate Resolutions is a legal provision that safeguards the interests of existing shareholders by granting them priority in acquiring assets or securities before they are sold to third parties. The two main types of right of first refusal include assets and securities, ensuring that existing shareholders have the opportunity to benefit from the value of the company.
